How Will Tariffs Impact Groceries?



How Will Tariffs Impact Groceries?



UNITED STATES - Many farmers, shippers, and retailers have pondered what effects will be felt throughout the industry if President Trump enforces tariffs. As we previously reported, a round of Chinese tariffs levied on U.S. produce goods in early July 2018 included avocados, potatoes, and cherries. After that, Trump promised $12 billion in aid to farmers hit hardest by the trade tensions. And over the weekend, he tweeted that his tariff plan was working "big time," although there is mounting evidence to the contrary. This time around, experts report that the impact of tariffs will be felt by consumers doing their grocery shopping, despite Trump's insistence that tariffs mean "jobs and great wealth."

According to a report by USA Today, prices for meat and other farm commodities—such as the aformentioned avocados and cherries—could drop because farmers are losing a portion of their overseas markets. Experts say prices at the supermarket could rise if retailers decide to pass the increased costs down to consumers, NBC News reports. Shoppers might see prices rise in general as stores try to spread out the damage, although it is too early to say at this stage in the game.

Experts report that the impact of tariffs will be felt by consumers doing their grocery shopping

As the pressure on farmers and producers increases due to escalating trade tensions between the U.S. and its allies, items such as produce, grains, dairy, and beef may see a dip or spike in cost at supermarkets. Although the U.S. does grow its own domestic supply of berries and avocados, it exports the fruits during its off-season, meaning a potential spike in cost.

How will this all play out on the produce front? Will farmers stockpile any of their items before sending them to market? AndNowUKnow will continue to report on the impact of tariffs on our industry.